How Your Account is Protected at Sterling Trust
Nothing is more important than the confidence you place in those who handle your retirement funds. Equity Trust and its Sterling Trust division operate as a regulated custodian that earns trust each and every day. The intensive measures they go through to ensure your accounts are protected are shown below.
High Standards for IRA Custodians
- The Internal Revenue Code limits the ability to serve as a qualified custodian of IRA accounts.
- Equity Trust and its affiliates have operated as a qualified IRA custodian since 1983.
- Sterling Trust complies with numerous complex IRS reporting and record-keeping requirements.
- Sterling Trust operates as a division of Equity Trust Company, a trust company under authority granted by the state of South Dakota.
- Equity Trust meets state trust company capital requirements and complies with applicable state statutes and regulations.
- South Dakota law mandates regular audits of trust companies performed by state auditors.
- The Department of Labor (DOL) and the Internal Revenue Service (IRS) regulate qualified plans administered by us.
Cash Protection/Deposit Insurance
- Sterling Trust deposits all un-invested cash in FDIC insured accounts at Citibank, N.A. (NYSE: C).
- Deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000.
- Aside from the FDIC coverage on the un-invested cash held with Citibank, N.A., there is no coverage on investments held unless coverage is specifically provided by the investment.
- Please note: Non-FDIC insured investments are not insured by any federal government agency and are subject to risk, including possible loss of the principal amount invested.
- Unlimited FDIC coverage is provided on un-invested funds beginning December 19, 2008 through December 31, 2009, due to the participation in the FDIC’s Transaction Account Guarantee Program.
Sterling Trust, through its affiliation with Equity Trust, carries insurance with a leading national insurance company for the following:
- Errors and Omissions
- Financial Institution Fidelity Bond
- Sterling Trust's officers and employees work within a well established system of internal controls.
- The system of internal controls ensures the effectiveness and efficiency of operations and compliance with applicable laws and regulations.
- Equity Trust's internal auditor operates with independence and reports directly to the Audit Committee of the Board of Directors.
Independent Audit Performed Yearly by Certified Public Accountants
- Annually, Radachi and Company, Certified Public Accountants, audit the company's financial statements.
The auditors also evaluate the company’s internal controls and systems.
- Their findings are reported to the Audit Committee of the Board of Directors.
- The Audit Committee of the Board of Directors oversees the activities of both the company's internal and external auditors and receives reports directly from the auditors